Black-Scholes Option Pricing Model -- Intro and Call Example
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- Опубліковано 9 чер 2011
- Introduces the Black-Scholes Option Pricing Model and walks through an example of using the BS OPM to find the value of a call. Supplemental files (Standard Normal Distribution Table, BS OPM Formulas, and BS OPM Spreadsheet) are provided with links to the files in Google Documents.
tinyurl.com/Bracker-StNormTable
tinyurl.com/Bracker-BSOPM
tinyurl.com/Bracker-BSOPMspread
10 years later and its still gold, watching this video before my financial derivatives final 🙏🏼😂
Indeed, currently helping me with my ACCA AFM exam, good video
Who else feels smart they understood this?
Actually, all credit goes to Kevin Bracker. He did an excellent job!
This was great, I have been researching "mispriced items law michigan" for a while now, and I think this has helped. Have you ever come across - Genubrey Mispriced Infiltration - (Have a quick look on google cant remember the place now ) ? Ive heard some pretty good things about it and my partner got excellent success with it.
Meeeeeeee am so proud of myself
Explaining a complex subject in the simplest terms is not easy and this was very well done. Thank you Kevin!
Thank you for the explanation
Hi
Explained better than 99% of all university teachers in the world. Hello from Australia, thank you so much
Appreciate the feedback!
Thank you
You are a total blessing to me, am studying financial risk management, black schools option pricing model...you can imagine how you have helped me understand the formula. Hug hugs
Black Scholes not school
This series is probably the best on You-Tube for options pricing theory. Thanks Kevin !
I have my final exam in corporate finance tomorrow, and I was just absolutely thrown by this concept. Thank you, SO much! You've managed to make this seem incredibly easy. I almost feel dumb for not understanding it initially.
am watching this 10 years later and I understand the whole process a lot better. Love the simple explanation. Thank you Kevin!
Person like you should teach in the university, who can make most difficult issue easy. My FM prof. still doesn't give any real world example regarding option pricing but you are genius. my admiration and respect for you.
I was frustrated from frm's readings and now you clear all the doubts and ambiguities at once. You have earned my admiration and respect, sir
Who goes to heaven? Kevin Bracker or me? This is outstanding. Thanks for taking your time for us sir.
Every view you have is some kid somewhere who is absolutely stoked they came across your content. Saving my semester!
Bracker 2020
The video explained the Black-Scholes Option Valuation Model exceptionally well. Really beneficial to newbies of this pricing model.
Goodness....... nobody can explain this way. Excellent job Kevin! Hats off to you. Thanks a lot. Didn't expected that I would found this much elaboration on the topic.
This is a seriously great explanation. I've watched several videos on this topic today and none helped me to understand. Yours did. Thanks so much!
I have never really had problems with any type of math formulas. I have had to work a little harder solving some moreso than others, however, I could never NOT solve them. Then came Black-Scholes. I was truly flabbergasted. Then I saw your tutorial and excel sheet. It is excellent. It walks you through everything! Thank you so much!!!
Had an accounting professor who used the 'chalkboard method' of teaching where you write it out instead of using power point presentations (of which there are way too many of in business school.) When you write it out, it really does feel like you are with the professor the entire time. Like your minds are one.
This is the absolute best explanation /lesson on Black-Scholes. Thanks a million.
I have an exam on this tomorrow. This video was excellent, thank you!
I cannot CANNOT thank you enough, sir. I am indebted . May you live a thousand years and more.
Thank you
Not all Heroes wear capes! I sincerely thank you for this explanation. Best wishes
I'm so glad you posted this clear and concise demonstration of the BSOPM. As a math major, I had always been curious about this model because my friends in the financial mathematics program were always talking about how fundamental it was to their studies. Now that the BSOPM is demystified some I don't feel as intimidated by it as when I knew nothing of it, a similar experience as when another youtube video demystified Fourier series calculations for me. Thanks!!!
Got my Finance exam in a couple hours. You just saved my life!
Thank you!
Great video series on Black-Scholes. Took the mystery out for me.
Using spread sheet and norm table are very useful to understand the main point. Thanks Kevin!
Very nice explanation, slow and patiently, always going back to the formula and explaining _every_ step. Nice video, thanks
Wow. This was excellent. I used the Black-Scholes online calculator and then used this and I got the same numbers. You are a phenomenal educator!
I have no words to express my thank you . These videos have saved my harvard days of investment class
Thank you Kevin,.... i was studying with "Maths of Financial Derivatives " and your video are strong complement....
Thank you Kevi , for expertly explaining this viable concept. You're very intelligent, so I know that I can learn valuable tips from you. You just earned a new subscriber!!
really wish you were my uni lecturer, saw this after struggling to understand my lecture even after watching it like 5 times
Wow.. This was very helpful. I never understood what "e" or "ln" was or how to calculate it until now! Thank you!
You're welcome.
Using a real life example was very helpful .. thanks !
Thank you for explaining option pricing with Black & Scholes!
Wow great video and very clear information. Was having some problems with the formula but you make the whole formula seem very easy. Your method is also different to the way my lecturer taught us however I much prefer yours. Thanks again!
Great video. Your explanation has improved my understanding of this topic.
Thank you
Amazing explanation. I was struggling to understand BSM. But it cleared all my doubts. Thanks. 🙂
Damm teacher I read 2 chapters of this in my book and I didn’t understand nothing, now all the things seems to easy with the video....thanks 🙏
Kevin did an excellent job. Thank you, sir!
Very helpful. I have an exam coming up on the BSOPM and this definitely helped me practice. Thanks!
Super Excellent . Thanks Kevin for this valuable lecture
This was awesome...I now understand BSM-OPM..Many thanks to Kelvin
So helpful !!! tnx, this example let me finish my eternal homework in no time :D
this was so helpful i finally understood you're a great teacher ! thank you
omg thank you very much. This video was way more (really much more) useful than the two hours with my university professor who cannot explain anything right
Thanks. Been reading a few books on the related so good to see it can be broken down to be less daunting.
Great job explaning a very complex subject!
Excellent presentation. Once you know the SD and the variation, you can actually covert these numbers into a standard normal distribution. Then, using a z score, you can see the probable outcomes. The model is using variation (volitility and risk) as a measure of probable outcomes.
Thank you Mr. Bracker! You explained everything really well. Good work!
I ended up understanding a lot more with video, thanks for posting Kevin.
Such a brilliant explainer!! Subscribed and liked immediately 👏
Hey, THank you so much for explaining this in a clear manner. Really helps... Please post more videos I love your teaching style
Very Clear Explanation! Thank you for the videos, and continue to this videos. Thanks
You explain very well, clear and slowly! Great. Thanks
This has done me well, thank you very much.
At 11:08 when I saw the formula it didn't looked scary anymore n I felt like this is easy🙏🙏😍.. You are really amazing.
Wow exceptional video, really really well explained and at a very at a perfect speed. Thank you
Great explanation sir. Thank you!
you literally saved my life with this thank you so much
I hope you're using the term "literally" to imply "figuratively" or the BS OPM is even more powerful than suspected! 🤣🤣
Your video is fantastic, makes it easy to understand options pricing. Thanks a lot
Your videos are great!!! Thanks for making them.
You explain it good, im glad I found this video thanks 😊
Explained very well,thanks.
I hope you are my lecturer, thanks for the video!
I really like the video . 😄 a very simple style of teaching and teaching students . Thank you for the video
Excellent example for exam review. Thanks!
Amazing video loved the explanation waiting for more such videos !
You are the best. Ali khalil lawyer from Lebanon
Very Clear Explanation .. Thank you for the Videos
The most practical one compare to other explanation and examples
you are a star indeed. God bless you more
its very helpful, you made everything so clear, thank you a lot!
Excellent walk through
Hey, Kevin! Thanks a lot for the file. Everything is clearer thanks 2 U!
You're welcome...glad it helped.
Clearly explained every steps
Thank you so so so much. On Teachers day in India I wish you a very happy Teachers day. I understood black Sholes just coz of this video.
Thanks!
What an excellent video. Many thanks.
Great explanation! Would like to see you perform a couple examples using the BSOPM to identify the implied volatility for the particular underlying. I understand this is just working the formula a slightly different way with the variables at hand, but your followers would greatly appreciate - especially in-light of the importance of IV in options trading. Cheers!
Wow you did in 13 mins what my 400 level college Instructor couldn't do in 3 hours :)... great job sir
Thank u. I owe u big part of my HW grade. 😊
thank you so much Sir I would like.to thank you because.i understood easy of that concept ...love u lots from india...😍🇮🇳
Great explanation . Thankyou!!😍😍
thanks for the throughly explanation.great job!
Excellent Teacher!!
you made me understand this with ease thank you so much
Thank you so much
Finally understood!
It depends on how precise your standard normal table is and how precise you want your answer. I used Excel to generate a standard normal table that is pretty precise (from -1.00 to 1.00 every hundredth, from from 2.00 to 3.00 every two-hundreths, and five hundredths beyond there) to use for my class, so the students are not expected to interpolate. In practice, you would like use a spreadsheet or canned program that would generate exact values.
YOU rock BRO!!!!!! I love Finance!!!! Kepp it coming!
you just saved me so much time, thanks
Thanks for such clear and simple explanation
Super clear. Thanks a lot!
Thank you sir! Life Saver, really!! :D
THANK YOU SOOOOOO MUCH, you saved my homework tonight.......!!!!
+FRUIT Til FIVE What class is this for? I am a senior in high school, and this application of calculus is very interesting to me.
+vlKenzo Investment Analysis 👍🏽
Thank you, love from 🇮🇳
thank you so much kevin. it is very helpful.
Thank you Kevin !!! Excellent video !!!
Akhil Trader you can add or remove Greeks by right clicking the top of the column [where it's says alpha , beta, pnl etc)
Nicely explained!
This is amazing man!!!! Cheers mate
OLD but GOLD!
Thank you! Finally understood!
you should also explain which are the assumptions under the black and scholes model like the lognormal property of stock prices